What is a Design-build Contract?

It is a type of contract used in the construction industry where design and construction services are done by a single entity. The project owner signs a single agreement with a contractor who is responsible for both the design and the construction.

How Does a Design Build Contract Work?

Traditionally, the owner used to sign two separate contracts, one for designing part and another for construction. This may often lead to many complications including the adversarial relationship between the designer and the contractor. It lengthens the project delivery process and often poses challenges, especially in unforeseen situations. During the construction phase, if a change in design becomes necessary for the successful execution, the designer and the contractor often get involved in a blame game. That can even lead to litigation and delay in delivery. In design-build-contract one single contractor is responsible for the whole project, right from its design phase until the completion of the project. It reduces the risk factors for the owner and the overall costs of the project. The owner can approach one single entity for all the issues related to the project and the problem solving becomes easier and fast. Nowadays, it is a popular practice in the construction industry and is followed in many countries in the world.

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